COO, Deputy to CEO Pekka Vauramo 8 March 2012 Frankfurt road show March 2012 2
Strategy and financial targets March 2012 3
Vision and mission Our vision is to be the world s leading provider of cargo handling solutions Our mission is to improve the efficiency of cargo flows March 2012 4
Company values March 2012 5
Portfolio Solutions for industrial and on-road load handling Solutions for ports and container handling Solutions for marine cargo handling and offshore load handling March 2012 6
Strategic focus areas 2011 2015 CUSTOMERS Improve knowledge of customer needs Invest in attractive customer segments Decide which segments to keep and which to divest SERVICES Spare parts logistics Regional distribution centres Growing up in the value chain towards more preventive maintenance Support customers operations outsourcing EMERGING MARKETS Position in Chinese market Develop other growth markets: India, Brazil, Russia and Africa Acquisitions, partnerships, organic growth INTERNAL CLARITY Common processes Harmonisation of information systems Further development of Industrial & Terminal organisation Working together March 2012 7
Acquisition of terminal operating systems provider Navis Announced in January 2011, consolidation from 19 March 2011 onwards Navis is #1 vendor in marine terminal logistics solutions market Its global customer footprint is in over 50 countries at 200+ terminals The company has 20+ years of expertise in developing solutions to complex supply chain execution problems Navis has ~350 employees providing worldwide sales, services and support 2011 sales were around EUR 50 million March 2012 8
Cargotec to strengthen position in heavy cranes Cargotec and its long-term manufacturing supplier in China, Jiangsu Rainbow Heavy Industries (RHI), plan to establish a joint venture to provide leading heavy crane solutions globally, expand delivery capacity and grasp growth opportunities in the Chinese and global markets. Cargotec s ownership would be 49 percent and the value of Cargotec s equity investment approximately EUR 30 million. In addition, Cargotec plans to strengthen its strategic partnership with RHI by becoming an owner in the company. Cargotec will acquire a 49 percent interest in China Crane Investment Holdings Ltd, which currently owns 18.75 percent of RHI shares, for approximately EUR 50 million. The transaction is subject to the relevant regulatory approvals, which are expected to be received in the coming 6 8 months (from late July 2011). March 2012 9
Focus areas in Marine business area Two dimensional growth Strengthen solution sales Grow in offshore services Geographical focus in China and Brazil Leverage Rainbow-Cargotec Industries joint venture in offshore Strong and focused R&D March 2012 10
Focus areas in Terminals business area Offering development, including equipment, systems & automation and services Project sales and delivery capabilities Sales management capabilities Cost efficiency March 2012 11
Focus areas in Load Handling business area Focus on customer needs Analyse future trends Develop operating model Build strong strategy Develop route to market New markets China, India and Russia New product development March 2012 12
Focus areas in Services business area Expand offering to fleet performance Build strong offshore services in Brazil and the USA Further develop asset management March 2012 13
Financial targets Dividend 30 50% of earnings per share Dividend Sales growth Annual sales growth exceeding 10% (incl. acquisitions) Raising the operating profit margin to 10% Operating profit margin Gearing Gearing below 50% (over the cycle) March 2012 14
January December 2011 financials March 2012 15
Highlights of January December 2011 Market activity was healthy in both segments and all geographies Q4 order intake grew 18% y-o-y Q4 sales grew 11% y-o-y R&D expenditure was EUR 60 (37) million Q4 operating profit margin was 5.8% Marine profitability remained very high Brisk activity in Terminals EPS for 2011 doubled from 2010 March 2012 16
Market environment in January December 2011 Markets for load handling equipment grew in 2011. At the end of the year, the markets were marked by uncertain business environments, particularly in Europe. During 2011, the number of containers handled in ports grew. Brisker demand for container handling equipment used in ports reflected a revival in activity. Demand for cargo handling equipment for bulk vessels slowed towards the end of the year, but revived for cargo handling equipment destined for RoRo and container ships. Services markets grew throughout the year for load handling and terminals and during the second half also for marine cargo handling. March 2012 17
Key figures in January December 2011 Q4 2011 Q4 2010 Change 2011 2010 Change Orders received, MEUR 842 716 18% 3,233 2,729 18% Order book, MEUR 2,426 2,356 3% 2,426 2,356 3% Sales, MEUR 828 747 11% 3,139 2,575 22% Operating profit, MEUR 48.0 38.5 25% 207.0 131.4 58% Operating profit margin, % 5.8 5.2 6.6 5.1 Cash flow from operations, MEUR 88.3 99.5 166.3 292.9 Interest-bearing net debt, MEUR 299 171 299 171 Earnings per share, EUR 0.56 0.39 2.42 1.21 March 2012 18
Q4: Industrial & Terminal s order intake grew 36% y-o-y MEUR 800 600 400 200 717 599 557 504 361 317 278 304 415 423 389 462 Q4 58% of orders from EMEA Orders grew strongest in EMEA 535 513 566 627 0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 March 2012 19
Q4: Marine s order intake continued healthy MEUR 500 439 400 415 411 Q4 53% of orders from APAC Offshore showing signs of recovery 300 200 100 129 96 155 158 160 183 309 294 254 286 248 246 216 0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 March 2012 20
Q4: Sales grew 11% y-o-y and 22% in 2011 MEUR 1,000 800 600 400 200 177 550 254 647 256 298 592 626 218 257 457 421 305 277 256 229 241 331 364 314 362 379 276 322 310 297 471 442 485 456 284 546 0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Industrial & Terminal Marine March 2012 21
Q4: Industrial & Terminal operating margin MEUR % 800 600 400 200 0 7.9 6.7 5.9 2.8 4.2 4.4 4.3 4.5 4.5 2.5 2.0 1.2-0.6-1.5-2.2-2.3 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 Sales EBIT % 10 8 6 4 2 0-2 -4 EBIT% Q1/08 Q4/10 excluding restructuring costs March 2012 22
Q4: Marine s profitability continued very strong % 20 16 12 8 6.7 8.6 7.5 10.3 8.5 9.1 10.0 13.3 14.2 15.8 14.2 12.0 13.4 14.8 14.8 15.1 4 0 Q1/08 Q2/08 Q3/08 Q4/08 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 EBIT% Q1/08 Q4/10 excluding restructuring costs March 2012 23
Gross profit development March 2012 24 % 12 14 16 18 20 22 24 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09 Q3 09 Q4 09 Q1 10 Q2 10 Q3 10 Q4 10 Q1 11 Q2 11 Q3 11 Q4 11
Cash flow from operations healthy in growing markets MEUR 350 300 250 290 293 Net working capital was EUR 144 million 200 150 100 50 0 166 134 100 81 88 66 47 36 35 6 2008 2009 2010 2011 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 March 2012 25
Q4: Services sales grew 11% y-o-y MEUR 1,000 800 600 773 630 678 745 Q4 services sales 24 (24) percent of total sales In addition to spare parts, demand grew for various refurbishment and modernisation projects 400 200 153 171 171 183 173 186 184 202 0 2008 2009 2010 2011 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q2/11 Q3/11 Q4/11 March 2012 26
EMEA and APAC equal in size, Americas grew slightly Sales by reporting segment 2011, % Sales by geographical segment 2011, % Equipment 85% (84) Services 15% (16) 21 % 39 % (18) 40 % (41) (59) 61 % Equipment 71% (67) Services 29% (33) 39 % (40) (42) Marine Industrial & Terminal Americas APAC EMEA March 2012 27
Five biggest countries accounted for 50% of sales 6% 14% 10% 15% 5% March 2012 28
Changes in number of employees 165 211 10,928 129 270 153 254-109 -62-37 Poland: MAU Stargard USA: Navis acquisition and MAU Ottawa China: MAU Shanghai and sales Malaysia: acquisition and MAU Ipoh India: Navis acquisition and R&D 9,954 Q4 2010 Poland USA China Malaysia India Sweden Norway Australia Other Q4 2011 March 2012 29
Earnings per share and dividend (B share) EUR 3.00 2.50 2.57 2.17 2.42 2.00 1.91 1.50 1.00 0.50 0.00 1.21 1.00 1.05 1.00* 0.60 0.61 0.40 0.05 2006 2007 2008 2009 2010 2011 EPS Dividend March 2012 30 * Dividend proposal by the Board of Directors
Cargotec s key priorities in 2012 Asia Strengthening market position in Load Handling Repositioning in heavy cranes (JV) Growth opportunities for Marine Further development of Services Cargotec ERP Leveraging the building blocks in Terminals March 2012 31
Leveraging the building blocks in Terminals Navis acquisition Technology and competence centre in Singapore Technology and competence centre in Tampere, Finland Repositioning in heavy cranes Winning with products, projects and services March 2012 32
Outlook Cargotec expects its 2012 sales to grow and operating profit margin to improve compared to 2011. March 2012 33
Appendices March 2012 34
Macro indicator trends Truck sales GVW over 15 ton -Regions 2008 2009 2010 2011 2012 Units 2013 2014 2015 2016 1 400 000 80 % Sales growth GVW over 15 ton - Regions 2008 2009 2010 2011 2012 2013 2014 2015 2016 1 200 000 60 % 1 000 000 40 % 800 000 20 % 600 000 0 % 400 000-20 % 200 000-40 % 0 EMEA APAC AMERICAS -60 % EMEA APAC AMERICAS Source: Global Insight Q4/2011 March 2012 35
Macro indicator trends Billion EUR 900 800 700 600 500 400 300 200 100 0 Total Construction Output 2007 2008 2009 2010 2011 2012 2013 2014 2015 EMEA AMER APAC Annual change (%) EMEA: Construction output Index 2005 = 100 Output Index Change (%) 6 120 4 115 2 110 0 105-2 -4 100-6 95-8 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Annual change (%) 10 8 6 4 2 0-2 -4-6 -8-10 -12-14 AMER: Construction Output Output Index Change (%) Index 2005 = 100 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Source: Oxford Economics Q4/2011 March 2012 36 120 100 80 60 40 20 0 APAC: Construction Output Annual change Index 2005 = 100 (%) Output Index Change (%) 8 200 6 150 4 100 2 50 0 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Macro indicator trends 400 000 Drewry (Throughput 000 TEU units) 2007 2008 2009 2010 2011 2012 20,0 % Drewry (Throughput TEU % change) 2007 2008 2009 2010 2011 2012 350 000 300 000 250 000 200 000 15,0 % 10,0 % 5,0 % 150 000 100 000 0,0 % -5,0 % AMER EMEA APAC 50 000 0 AMER EMEA APAC Source: Drewry Container Forecaster Q4/2011 March 2012 37-10,0 % -15,0 %
Ship contracting and delivery forecast Source: Clarkson research 9/2011 March 2012 38
Terminal operating system Trucks Automatic stacking cranes Automated horisontal transportation Ship-to-shore cranes ASC block March 2012 39
Low gearing and strong liquidity 31 Dec 2011 Gearing 25.4% Net debt MEUR 299 Liquidity MEUR 504 Cash and cash equivalents MEUR 204 Unused and committed long-term revolving credit facility of MEUR 300 During Q3 2011, Cargotec strengthened liquidity further by signing new credit facilities of MEUR 120 which will mature in 2018 2021. Cargotec is well prepared financially for the coming years MEUR 200 160 120 80 40 0 98 Repayment schedule of interest-bearing liabilities 39 93 5 3 91 184 2012 2013 2014 2015 2016 2017 2018- March 2012 40
Hiab offering Loader cranes Truck-mounted forklifts Demountables Tail lifts Forestry cranes Stiff boom cranes Services March 2012 41
Key competition with Hiab offering Knuckle-boom Cranes Stiff boom Cranes Demountables Tail Lifts Truck-mounted Forklifts Forestry Cranes Hiab Palfinger Hyva Fassi Effer PM Unic Tadano National Meiller Marrel Stellar Shimaywa D Hollandia MBB Maxon Manitou Chrisman Donkey Kesla Prentice March 2012 42
Kalmar offering Straddle carriers Reachstackers Terminal tractors Forklift trucks Ship-to-Shore cranes RTGs, RMGs Spreaders Services March 2012 43
Key competition with Kalmar offering Ship-to- Shore Cranes RTG/RMG Cranes Straddle Carriers Reach Stackers Fork Lift Trucks Terminal Tractors. AGVs Spreaders Mobile Harbour Cranes Services Kalmar ZPMC Liebherr Mitsubishi Mitsui Terex Konecranes TCM CVS Ferrari Hyster Heavy Taylor Kion Sany Svetruck Capacity Terberg Sinotruck Stinis RAM March 2012 44
MacGregor offering Hatch covers Ship cranes Offshore deck equipment Securing RoRo Link spans Bulk loaders Services March 2012 45
Key competition with MacGregor offering Hatch Covers Deck Cranes Lashing equipment Bulk systems RoRo equipment Offshore Services MacGregor TTS Seohae IHI Nakata Liebherr Oriental Precision NMF MHI Luzhou (KGW) German Lashing SEC Krupp Buhler FLS Sumitomo National Oilwell Rolls Royce Dreggen ODIM Coops & Nieborg Ainoura (ex-tsuji) (cement) (coal) (coal) (grain) (coal) () March 2012 46